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Be Wealthy & Smart

Jul 27, 2016

Women in households across the US manage $5 trillion!

More than half of women with investible assets of $1 million think their financial advisor doesn’t understand them, according to a 2014 study by the Center for Talent Innovation, a NY think tank.

A study by National Bureau of Economic Research in 2011 found that FA’s ask women fewer questions than men in the initial meeting and 40% are likely to tell women than men that they must first transfer their portfolio to the advisor’s firm before receiving any advice.

It goes along with what I’ve been told…that FA’s don’t speak to the woman, even if she’s the breadwinner, they look at the man the whole time, don’t ask her goals, etc.

According to Wells Fargo, the median retirement balance in women’s accounts is $500k vs. $700k for men.

On average, women drop out of the workforce for 11 years to care for children. That amounts to $224k lost in lifetime earnings and SS benefits, according to AARP.

Less than 25% of advisors are women, with no change in a decade.

By 2054, $40 trillion in wealth will be passed on, much of that falling into womens’ hands according to the Center for Talent Innovation.

Seventy (70%) percent of women leave their financial advisor after their husband’s death.

Women with $1 million in investible assets 45% were deemed financially literate, but only 30% said they felt confident in their knowledge vs. 39% of men deemed financially literate and 34% of men felt confident.

Men were more interested in performance and investment choices and women were more interested in services, charitable giving, tax management, & long-term care.

I want to encourage women to learn through the podcast. Share with your friends. Financial literacy is important.